Leaked report exposes abuse of lottery revenue paid out to minstrel team

Leaked report exposes abuse of lottery revenue paid out to minstrel team

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Minstrels accomplish in Athlone on two January 2017. Archive photo: Ashraf Hendricks

A report by attorneys Dabishi Nthambeleni into a R27.three-million grant with the Nationwide Lotteries Fee into the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has located no evidence that a museum ever existed.
The investigators observed the CTMCA did not utilize the R5-million allotted to purchase or build a museum.
In addition they identified the CTMCA only bought land truly worth R1.seven-million, not R5-million as allocated.
They observed the CTMCA used money through the Lottery to get workshop tools from one of its possess administrators, Richard “Pot” Stemmet.
A leaked forensic report reveals how an incredible number of rand granted to the Cape Town Minstrel Carnival Affiliation (CTMCA) by the Countrywide Lotteries Fee (NLC) to build a museum to rejoice the town’s abundant minstrel record went astray. The museum was never ever designed.

The details in the abuse of many rands of Lottery cash for any museum that never ever was are uncovered within an investigative report commissioned by the NLC in 2021.

The museum grant was Element of in excess of R64-million in Lottery resources allotted to the CTMCA concerning 2003 and 2017.

The very first Component of the investigation, by regulation business Dabishi Nthambeleni, was done in between September 2020 and January 2021 and centered on a R27.3-million grant on the CTMCA in 2014, which provided funding to the museum. The accepted budget for that museum was in excess of R12.8-million, with R5-million of that allocated for any building to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the purchase of the setting up to the museum and if the museum “basically existed”.

The firm was also instructed to research

the acquisition with Lottery cash of two motor vehicles – a sixty-seater bus along with a 23-seater bus – for R2.four-million; and
various equipment “obtained with the production in the costumes and hats” with the minstrels carnival, for R5.4-million.
At the time, convicted criminal Richard “Pot” Stemmet was director on the CTMCA. He was appointed a director in the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors from the organisation. Stemmet was reappointed like a director in May well 2021.

The investigation adopted extensive reporting by GroundUp about the numerous rands of Lottery funding allocated to the CTMCA (see in this article, right here and here) and just how the money likely aided finance the ANC’s 2014 election campaign within the Western Cape, led by at the time by Marius Fransman.



The building on the ideal was the intended website of the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photograph: Raymond Joseph

In reaction into a Parliamentary query, former NLC Commissioner Thabang Mampane mentioned grants to three CTMCA “tasks” - including the museum - concerning 2012 and 2015. All a few projects had been finished, she advised MPs.

Although the investigators found no evidence that a museum experienced at any time existed.

To start with the museum was resulting from open in rented premises in Crete Highway, Wetton. A photograph received by GroundUp in the meant Wetton museum demonstrates a coffee shop with a few musical devices and minstrel costumes and collages of pics haphazardly hung to the partitions, and also a design ship on its plinth in a corner.

In its report, Dabishi Nthambeleni reported it was “not ready” to confirm if a museum had ever operated from these premises.

Stemmet advised the investigators the museum were moved since they could now not manage the lease of R100,000 a month. He claimed the CTMCA experienced ordered property for R1.7-million in Schaapkraal to the museum, but could not get it rezoned, and had been offered for the same rate. Schaapkraal is inside of a peri-city location far from town.

Subsequently, the museum had been moved to a brand new locale in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But following going to the premises, which are in an industrial spot, the investigators mentioned they doubted no matter if a proper museum existed there. Photos connected to the report clearly show a mishmash of randomly displayed uniforms, musical instruments and various minstrel paraphernalia nailed to the wall, displayed on tables and unfold out on the ground, without rationalization.

“There's a nominal number of items on the museum [that] under no circumstances stand for the much more than one hundred-yr historical past from the Cape City Carnival, the investigators stated, including that there was “no signage outdoors the premises indicating which they housed a museum and … typically, the museum does not search to be open to the public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni pointed out, by going the location with the museum to another area without notifying the NLC.



The Schaapkraal house, on which no museum was at any time built. Picture: Raymond Joseph

Buses
Stemmet explained to the investigators which the CTMCA experienced to maneuver with the rented Crete Highway premises since it had operate up a R4-million financial debt with the City of Cape City and was scared its devices might be attached.

“Because of the lawful battles as well as the debts, the organisation experienced to maneuver its residence from five Crete Road to stay away from the sheriff from attaching the home in the organisation,” Stemmet informed the investigators.

Sedrick Soeker, The present director with the CTMCA, told them that the two buses bought with lottery funds ended up saved inside of a secret spot “concealed from your Sheriff”. Nevertheless the investigators stated they had been unable to confirm that any buses had at any time been purchased.

Stemmet also verified which the buses were concealed to stop them remaining seized. But once the investigators asked to be taken on the put exactly where the buses were saved, he explained to them that “the operator of The trick locale wasn't available to open up the premises for us”.

“The CTMCA could not provide evidence of payment for 2 autos that it allegedly purchased with grant money,” the investigators noted.

Soeker also explained to them the Schaapkraal home had been bought because of the credit card debt.

“Mr Soeker described that In line with his comprehending, due to debt owed to the City of Cape City, the CTMCA determined It could be ideal to offer their [Schaapkraal] residence … and also to also to hide the property in the CTMCA to avoid the sheriff from attaching the property.”

JP Smith, Cape City’s mayco member for protection and protection, has Formerly told GroundUp which the CTMCA “threw income away” on litigation with town.

“On a yearly basis like clockwork, as we approach the tip on the year, the CTMCA picks a authorized battle with town, around permits or something else. We by no means initiate it. They keep throwing income absent on vexatious litigation which they lose and also have expenditures awarded against them. That is fully self-inflicted,” he claimed.

Soeker advised the Dabishi Nthambeleni investigators that the leading purpose players on problems with Lottery funding ended up Stemmet and previous CTMCA board member Kevin Momberg, “who had been accountable for all of the admin, funds and working hihuay the CTMCA.” The investigators said they were unable to contact Momberg.

Hats
During their “investigation in loco” for the Primrose Park premises, the investigators “identified numerous equipment, some in great condition, some in undesirable situation and many that looked rusty and extremely old”. Stemmet informed the investigators that there was also an off-web page storage facility in which “devices plus some equipment” were being retained.

“We requested him to get us to the ability but he was evasive to our request.”

Based on photos and invoices in GroundUp’s possession, some, Otherwise all, with the goods appear to be equipment which was illegally faraway from the CTMCA’s earlier premises. Stemmet is dealing with charges for this removing.

According to the closing progress report submitted to your NLC with the CTMCA, the machinery was ordered from Martin-Conne Milliners, an organization wherein Stemmet, his wife and his daughter have been administrators at enough time.

The investigators uncovered this “alarming”.

“From the CIPC search of Martin-Conne Milliners as well as the invoices submitted, we Be aware the following alarming discovering: Mr Stemmet himself is really a director of Martin-Conne Milliners. The registered address of the company is five Crete Street, Wetton, Cape Town, the same handle on which the museum was intended to be constructed and/or transformed,” they noted.

An audit by accountants Kopano Incorporated, connected towards the investigative report, recorded which the CTMCA was in the entire process of buying “equipment, plant and inventory” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was an in depth Company of which Stemmet was among the administrators.

In line with Dabishi Nthambeleni, the corporation has paid R1.2-million for a deposit, this means R6.9-million remains to be owed, although there is no payment date set for when this must be paid.

The Kopano audit as well as the near backlink involving the companies “show to us that there's ‘foul Enjoy’ associated with the acquisition of the equipment from the museum workshop”, the investigators said from the report.

“We find that it's extremely possible that CTMCA used the funding with the NLC to ‘refund’ among its most important directors for your residence at a higher overpriced charge than the actual selling price and price of the assets and/or equipment.”

Tips
Dabishi Nthambeleni concluded that it absolutely was unable to establish how the grant for the CTMCA had been put in.

“The truth is, an in depth report on how the funding with the NLC was made use of, would be impossible as the CTMCA doesn't have any receipts, or evidence of payments to confirm the quantities expended on Just about every merchandise it asked for funding for. The interim report and ultimate report of the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.

The investigators discovered the NLC experienced not performed a site take a look at just before approving the grant. But this wasn't standard follow at some time and they identified no evidence of carelessness by NLC staff members.

At some time, the NLC’s principles didn't involve funded organisations to post proof of payment with interim reviews, they pointed out. This intended that the CTMCA was ready to get a 2nd tranche of funding while not having to deliver evidence that it had used the first tranche for its supposed reason.

Adhering to the appointment of a different board, commissioner and senior executive workforce, the NLC has tightened up on these and other challenges.

Dabishi Nthambeleni encouraged that

the NLC decline any upcoming funding programs from the CTMCA;
the CTMCA and any customers who were involved with the grant be subjected to the NLC’s “delinquency” approach;
the NLC open up a criminal case of fraud with SAPS or the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated cash.
But, rather then act around the report’s recommendations, the NLC – less than its former administration – selected to suppress it, mainly because it experienced completed with the past stories into corruption it had commissioned.

GroundUp despatched inquiries to Stemmet and Soeker by means of SMS, and requested for electronic mail addresses to send out the thoughts by e-mail far too. But no response had been been given at time of publication.



The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph

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